Gross-Wen Technologies, Inc. receives $2 million investment from Doerfer Corporation

FOR IMMEDIATE RELEASE

AMES, Iowa (June 20, 2018) - Gross-Wen Technologies, Inc.(GWT) today announced receipt of a $2 million investment from Doerfer Corporation, a US-based engineering designer, manufacturer, and integrator of factory automation and technology-based systems and related equipment.

GWT, founded in 2014, is commercializing an algal wastewater treatment technology developed at Iowa State University. The technology, called the Revolving Algal Biofilm Treatment System (RAB), removes nitrogen, phosphorus and other pollutants from municipal and industrial wastewaters. The algae biomass produced can be used as a slow-release algal fertilizer or to make bioplastics and biofuels. In April 2018, GWT was issued a patent for its innovative algae treatment system.

GWT Founder and President Dr. Martin Gross said the partnership between GWT and Doerfer Corporation is not new.

“Doerfer is the equipment manufacturer of our RAB system and has been a key partner in the system’s development, improvement and automation,” Gross said. “To date, Doerfer has built several reactors for GWT, including the newest one at our long-term test site in Chicago at the Metropolitan Water Reclamation District.”

Gross said the funds will allow the company to make three to four hires including a vice president of operations and sales and operations staff.

“Our next goal is to hire an individual for the vice president of operations position with 10-plus years of wastewater treatment experience,” Gross said. “The sales position will be ‘boots on the ground,’ meeting with customers and building relationships. In addition, we are adding people to ensure our initial installations run smoothly.”

Commercial-ready product GWT has demonstrated proof of concept through a number of pilot-projects in Iowa as well as one with the Metropolitan Water Reclamation District of Greater Chicago. Gross said the full scale RAB system is now fully developed and ready to deploy.

“Chicago is the largest wastewater treatment district in the world,” Gross said. “The commercial-scale module we installed in Chicago can treat over 100,000 gallons daily. And, this spring, we entered into a contract with the City of Cresco, Iowa for a commercial test module that treats approximately 50,000 gallons daily.”

Gross said Doerfer played a major role in advancing GWT’s product to where it is today.

“That’s a big part of this investment and partnership – Doerfer builds high-end, engineered products which is the basis of our technology,” Gross said. “Doerfer’s other clients include NASA and the US Navy, so you know the equipment they produce will be reliable for our customers. Our completely automated wastewater treatment system is robust and built to last in the wet and corrosive environment common in wastewater treatment plants.”

Besides the state-of-the-art algae technology, GWT also offers customers maintenance contracts and profit-sharing for the algae produced.

“Most communities don’t want to sell algae, that’s not their business model, but it is ours,” Gross said. “We provide an offtake agreement for the algae and profit share with the community. So, a conventional municipal treatment plant that was traditionally a cost center now creates a revenue stream when they implement our system.”

Another key to GWT’s ability to scale its business was in May it gained Iowa Department of Natural Resources (DNR) regulatory approval for treating wastewater at small communities in Iowa.

“The DNR approved the sizing and layout of system implementation in Iowa,” Gross said. “Without DNR approval, you can’t make a sale, so getting the approval is one of the final hurdles before commercial deployment.

We are now evaluating expansion to other states. We hired Jennings Kallen Advisors, LLC to evaluate market opportunities in other states and to create implementation plans. Each state has their own regulatory agencies; however, by receiving Iowa’s DNR approval, we are hopeful other states will follow that lead and build their own approval process.”

David Takes, Doerfer Corporation President, stated that the investment aligns with the company’s strategy to invest in cutting edge, alternative technologies.

“The opportunity to work with GWT in developing this technology fits perfectly with Doerfer’s efforts to bring new and unique solutions to real world problems," Takes said. "The end result will be cleaner water as well as a growing and sustainable new business venture; will bring substantial benefits to our communities at large.”

“We were one of several young companies Doerfer is hoping to partner with using their core competencies – the partnership ties in well with their competency in logistics and manufacturing,” Gross said. “Doerfer is enthusiastic about a partnership with a company taking on a scalable solution that solves a big problem – water quality.”

Ultra-local focus Gross said he takes a good deal of personal pride that GWT was founded in Iowa, has many Iowa roots and an ultra-local focus. Gross is a native Iowan and attained his degrees from Iowa State. GWT’s co-founder, Zhiyou Wen, is a professor at Iowa State, and angel investor Dave Furbush, who personally invested $225,000 in the company, calls Iowa home. The company received help from numerous programs in the state, including the Ag Startup Engine, ISU Pappajohn Center for Entrepreneurship, ISU Startup Factory and Iowa Economic Development Authority.

“Now, we are partnering with an Iowa manufacturer to build our systems and feel we’re bringing a solid technology to the ‘Iowa table,’ so to speak,” Gross said. “We’re creating a new product [algae biomass], bringing more skilled manufacturing jobs to the state, and most importantly, helping Iowa solve a big problem with water quality.”

GWT is a member of the ISU Startup Factory’s inaugural cohort that graduated in June 2017 and is part of the Ag Startup Engine. GWT’s offices are housed at the Iowa State University Research Park.

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About Gross-Wen Technologies, Inc.: Gross-Wen Technologies is an Iowa-based company working to solve one of the world’s largest problems, water quality. The company was founded in 2014 by Dr. Martin Gross and Dr. Zhiyou Wen, and is based on a technology they developed at Iowa State University. The algae system is capable of cost effectively recovering nitrogen and phosphorus from wastewater. For more information on GWT, visit gross-wen.com

About Doerfer Corporation: Doerfer Corporation manufactures and supplies process automation products to solve product manufacturing challenges of companies worldwide. It offers large format hydraulic presses, custom heavy capacity automatic guided vehicle systems, individual powered and controlled wheel modules, press systems, tool and dies, and transport systems. The company’s application-specific process manufacturing systems help clients to manufacture, assemble, move, package, and test their products. It serves clients in aerospace/defense, automotive, appliance, automotive, building products, consumer, electronics, energy, fiber/textiles, healthcare, HVAC, and heavy equipment markets. Doerfer Corporation, formerly known as Doerfer Companies, Inc. was founded in 1961 and is based in Waverly, Iowa. It has locations in Waterloo, Iowa; Moline, Illinois; Del Rio, Texas and Acuña, Mexico. For more information, visit Doerfer.com

About Startup Factory: The Iowa State University (ISU) Startup Factory is a 52-week intensive program housed at the ISU Research Park (ISURP). Entrepreneurs in the Startup Factory receive formal training, resources, and access to a network of business mentors, advisors, counselors, and investors in two 26-week blocks: the first a formal curriculum centered on business validation, and the second, customized to their individual business needs. For more information on the ISU Startup Factory program, call 515-294-7444 or visit isustartupfactory.org

Contact: Julie Lelonek

Office of Economic Development and Industry Relations

515-294-1562/jlelonek@iastate.edu